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Domtar buys EAM core technology

May 11, 2012

Acquisition will help fuel adult inco business.

Domtar Group has purchased EAM, the maker of airlaid based absorbent core material once owned by Rayonier. The deal was valued at $61 million.

"The acquisition of EAM Corporation will give us long term research capabilities to further differentiate our full line of adult incontinence products while integrating the best available technology to grow our existing businesses," says John D. Williams, Domtar president and CEO. "EAM's patented airlaid manufacturing process provides the performance, quality, and cost competitiveness that we believe to be keys to success in the personal care market."

Most recently owned by Kinderhook Industries, EAM Corporation produces airlaid and ultrathin laminated absorbent cores with brands such as NovaThin and NovaZorb used in feminine hygiene, adult incontinence, baby diapers and other medical, healthcare and performance packaging solutions. The company operates a 71,000 square foot facility with state-of-the-art research campus and production lines in Jesup, Georgia. EAM Corporation has annual sales of approximately $45 million in more than 50 countries and a total of 53 employees.

Pulp maker Rayonier originally developed the NovaThin technology and sold it to Kinderhook, a New York-based private equity firm, in 2005.

With its roots in the paper industry, Domtar diversified its business into the adult incontinence market in 2011 with the purchase of Attends brand. At the time of this acquisition, Williams indicated plans to double the brand's earnings within five years.

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